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Nifty IT Index Plunges 1% for 8th Session; HCLTech, Infosys Lead Losses Amid Global Concerns
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Moneycontrol•29-09-2026, 13:40
Nifty IT Index Plunges 1% for 8th Session; HCLTech, Infosys Lead Losses Amid Global Concerns
- •The Nifty IT index extended its decline for an eighth consecutive session, falling 1% as investors reacted to Middle East developments and anticipated US economic data.
- •HCLTech, Infosys, and Wipro were among the top Nifty losers, with their stocks declining between 1% and 1.7% during afternoon trade.
- •Analysts expect continued consolidation for IT stocks due to weak discretionary spending and cautious management commentary, with September quarter earnings, starting with TCS on October 8, being closely watched.
- •Elevated oil prices, fueled by geopolitical tensions and a lack of deal to end hostilities with Washington, are contributing to inflation concerns, potentially prompting further interest rate hikes.
- •Markets are pricing in a 70.3% probability of a Fed rate hike in October, up from 57.6% a week ago, as US consumer confidence, job openings, and other key economic data are awaited.
Key Questions Answered
The Nifty IT index declined as investors assessed Middle East developments and looked ahead to US economic data to gauge the Federal Reserve's policy path. Negative bias also persisted due to a weak discretionary spending environment and a lack of improvement in company management outlooks.
Tata Consultancy Services is slated to begin the sector's September quarter earnings announcements by reporting its results on October 8.
Elevated oil prices and AI-related demand are fueling inflationary pressures, which markets project as a 70.3% probability of a Federal Reserve rate hike in October. Fed Governor Lisa Cook noted that these near-term price pressures and heavy data center investments could drive up economy-wide inflation.
